Posts Tagged 'Monetization'

This is a guest blog featuring Kontagent, one of this month's addition to the SoftLayer Technology Partners Marketplace. Kontagent's kSuite Analytics Platform is a leading enterprise analytics solution for social and mobile application developers. Its powerful dashboard and data science expertise provide organization-wide insights into how customers interact within applications and how to act on that data. Below the video, you'll see an excerpt from a very interesting interview they facilitated with Gaia Online's CEO with fantastic insight into mobile app metrics.

Important Mobile App Metrics to Track

At Kontagent, we've helped hundreds of social customers win by helping them gain better insights into their users' behaviors. We're always improving our already-powerful, best-in-class analytics platform, and we've been leveraging our knowledge and experience to help many of our social customers make a successful transition into the mobile space, too.

Whether you're in the early stages of developing a mobile application, or you've already launched it and have a substantial user base, looking to social app developers for a history lesson on how to do it right can give you a huge head-start, and greater chance at success.

Gaia Online has "done it right" with Monster Galaxy — a hit on both Facebook and iOS. In the first installment of our Kontagent Konnect Executive Interview Series, we spoke with CEO Mike Sego on how the company is applying many of the lessons it learned in moving social-to-mobile, including:

The metrics that are most important to succeeding on mobile

How to monetize on the F2P model

How to successfully split-test on iOS (yes, it is possible!)

Other tactics used to keep players engaged and coming back for more

Q: What are the overarching fundamentals for developers who want to make the social to mobile transition? Do these fundamentals also apply to mobile developers in general?
A: Applying the knowledge you gained on Facebook to developing for mobile is the most effective way we've found to succeed in the mobile space.

When it comes to content, the mechanics are almost identical for what motivates user engagement, retention, and monetization between mobile and social. Appointment mechanics, energy mechanics, leaving players wanting more, designing specific goals that are just out of reach until multiple play sessions, etc.—the user experience is consistent.

When it comes to social and mobile game apps, we have found that free-to-play models are the most successful at attracting users. Beyond that, you should focus on a very tight conversion funnel; once a new user has installed your application, analyze every action she takes through the levels or stages of your app. When you start looking at cohorts of users, if there is a spike in drop-offs, you should start asking yourself, 'What is it about this particular stage that could be turning off users? Did I make the level too difficult? Was it not difficult enough? What are some other incentives I can bake into this particular point of the app to get them to keep going?'

But, as you continue to develop your application, keep in mind that you should develop and release quickly, and test often. The trick is to test, fine-tune and iterate with user data. These insights will help you to improve conversion. Spending a disproportionate amount of time instrumenting and scrutinizing the new user experience will pay dividends down the line. This is true for both social and mobile games.

Q: What are the metrics you pay most attention to?
Just as it was in social, the two biggest levers in mobile are still minimizing customer acquisition costs (CAC), and maximizing lifetime value (LTV). The question boils down to this: How can we acquire as many users as possible, for as little money as possible? And, how can we generate as much revenue as possible from those users? Everything else is an input into those two major metrics because those two metrics are what will ultimately determine if you have a scalable hit or a game that just won't pay for itself.

User retention over a longer period of time
Specifically, look at how many users stick around, and how long they stick around, i.e., Day 1, Day 7 retention. (Day 1 retention alone is too broad for you to fully understand what needs to be improved. That's the reason for testing the new user experience.)

Cost to acquire customers
We look at the organic ratio—the number of users who come to us without us having paid for them. This is different from the way we track virality in social since our data for user source isn't as detailed… continued

The full interview goes on a bit longer, and it has profound responses topics we alluded to earlier in the post. We don't want to over-stay our generous welcome here on the SoftLayer blog, so if social and mobile application development are of interest to you, register here (for free) to learn more from the complete interview.

This guest blog series highlights companies in SoftLayer's Technology Partners Marketplace. These Partners have built their businesses on the SoftLayer Platform, and we're excited for them to tell their stories. New Partners will be added to the Marketplace each month, so stay tuned for many more come.

The term "Digital Super-Highway" seems to be quite prophetic as the monetization of the internet seems to be exploding from all angles. Monetization of the internet is something that we are always focusing on here since a good portion of our customer base turns our underlying infrastructure into a revenue-generating engine for them, be it through Value Added Services, enablement of SaaS business models, e-commerce activities or whatever focus our customers have (which are too many to list).

I always knew the monies on the web were staggering, but I was caught off guard the other day when I came across an article in Business 2.0, "The Man Who Owns the Internet". The article is about Kevin Ham, who has built a $300 Million Dollar portfolio of domain names. $100,000 for Greeting.com, and $31,000 for Christianrock.com and so on. He's a domain name mogul.

In a technology world, this seems to be the "day-trading" of the internet. The other portion of this article that struck me is the monetization of the typographical errors in domains, referred to as "Typo Squatting". We have all accidentally fat-fingered a key here or there and after closing the 85 pop-ups, the monies are moving like a slot machine with triple 7’s across the board. In an article referring to the monetization of Typo Squatting, companies have built multi-million dollar producing firms on capitalizing on a misspelling here, a lack of dash there, etc. Just for reference, it seems that www.softlater.com is already taken, which means my dream of typo squatting my way to retirement has taken a drastic turn.

With the tools we have put in place through the API and the private network we have really streamlined the enablement of the monetization of the internet, which when we talk to our customers it’s at the forefront of both of our minds. The successes of our customers ensure our success, so putting these tools in place are essential. Not to give away the secrets of others, but I have peeked into the private back-end network and seen things like credit card processing gateways, server to server data transfers, licensing gateways and numerous other activities that are surely streamlining the money making processes for our customers.

So I am not sure that when the term "Digital Super Highway" was coined that we ever thought there would be toll-booths along the way, but its clear that these are here to stay.

As a side note, if anyone is interested in sharing their monetization stories, feel free to drop me a line at bizdev@softlayer.com